What is the Loan Calculator?
Calculate the monthly payment, total interest and total cost of any fixed-rate installment loan. Seeing the total interest alongside the monthly payment makes it much easier to compare loan offers honestly.
How to use the Loan Calculator
- Enter your loan amount, your annual interest rate, your loan term.
- Results update automatically as you type; you can also press Calculate.
- Read the output: monthly payment, total interest, total of all payments.
- Use the 📊 chart to see the result visually, then copy or share it.
Formula and method
Worked example
With loan amount = $25,000, annual interest rate = 7 %, loan term = 5 years, the Loan Calculator returns monthly payment: $495.03; total interest: $4,701.80; total of all payments: $29,701.80.
Where the Loan Calculator helps in real life
You are comparing two personal loan offers and the monthly figures look close — but the total interest tells a very different story. The calculator shows payment, interest and total cost side by side.
A friend asks whether paying an extra $100 a month is worth it. Shortening the term in the calculator shows how much interest the extra payments could save.
Common mistakes to avoid
- Assuming an advertised rate is the rate you will be approved for.
- Comparing offers by monthly payment alone and ignoring the total cost.
- Typing the rate as a decimal (0.07) when the field expects a percent (7).
- Forgetting origination fees that are deducted from the amount you receive.
💡 Practical tip: Run the numbers twice: once with today’s rate and once with a rate 1% higher, so you know your comfort zone.
Tips for better results
- Compare at least two terms, such as 3 and 5 years, before choosing.
- Check whether the lender charges a prepayment penalty.
- Use the APR, which includes fees, when comparing lenders.
⚠️ These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Frequently asked questions
What does the Loan Calculator do?
Calculate the monthly payment, total interest and total cost of any fixed-rate installment loan.
How is it calculated?
The Loan Calculator uses this method: Payment = P × r ÷ (1 − (1 + r)^−n); where r = annual rate ÷ 12 and n = years × 12.
Can you show an example?
With loan amount = $25,000, annual interest rate = 7 %, loan term = 5 years, the Loan Calculator returns monthly payment: $495.03; total interest: $4,701.80; total of all payments: $29,701.80.
Is the Loan Calculator accurate?
It uses standard published formulas and is tested against known values, but results are estimates for guidance. These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Is this tool free and private?
Yes — the Loan Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.
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